Social Security and Medicare Taxes The Federal Insurance Contributions Act (FICA) provides for a Federal system of old-age, survivors, disability, and hospital insurance. The old-age, survivors, and disability insurance part is financed by the social security tax. The hospital insurance part is financed by the Medicare tax. Each of these taxes is reported separately. The employee tax rate for social security is 4.2% of taxable wages. The current wage base limit is $106,800. The employee tax rate for Medicare is 1.45%. There is no wage base limit for Medicare tax; all covered wages are subject to Medicare tax. For additional information reference the IRS website, then do a forms search for IRS Publication 15.
To reference tax withholding tables, go to the IRS website, then do a forms search for IRS Publication 15. Tax tables start at around page 42 for biweekly paid employees claiming single marital status.
Indiana State Income Tax rate for 2011 is 3.4%. Indiana County taxes vary by each county. The county in which you are taxed is based on an individual's principle place of residency or employment as of January 1 of each year. A new Wh4 form (Indiana Withholding Certificate) is required if an individual moves and changes their county of residency during the year. The county change will not be effective until the first pay of the following year. How to Compute Withholding for State and County Income Tax (PDF)
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